Turners with MTF
Integrated automotive financial services group, Turners Limited has signed a partnership deal with with Motor Trade Finance (MTF) to provide a non-recourse lending product to MTF’s network of franchisees and dealers. Demand within the MTF network has pushed the decision and will mean that Turners will take on the risk associated with the loans originated by its franchisees and dealers. Almost 90% of the loans are expected to be for consumer purchase of motor vehicles, with the balance as commercial lending, mainly on trucks and machinery. CEO of Turners Limited, Todd Hunter, said: “We have had a long standing and successful relationship with MTF and this is reflected in the substantial investment from both parties to get this product developed and launched. Turners has an 8% shareholding in MTF and this joint initiative further strengthens the partnership between our two organisations. This offer will provide a great outcome for Turners, MTF and the MTF network.” The partnership is for an initial two year term, with the right to extend, and funding will be provided by Turners with the support of its banking partner, BNZ. All loans will be fully secured and be eligible for Turners’ securitisation program which is currently in development and expected to be launched early in 2017. CEO of MTF, Glen Todd said the MTF network will have access to a non-recourse product, for the first time, through MTF's lending platform. "The addition of a non-recourse product gives our franchisees and dealers greater choice to meet their individual appetite for risk and return, without exposing MTF shareholders to any additional risk. The non-recourse product complements our existing model and will leverage off our superior credit systems and processes. The platform is simple to use and the recourse/non-recourse option allows MTF franchisees and dealers to easily select the loan product that best meets their needs. We believe this offer provides a unique opportunity for MTF and its network.” A pilot of the new loan product will commence in December 2016 with a progressive rollout across the MTF network from early 2017.
